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2016-10-07 08:24:38

KLAC

KLA-Tencor

$71.79

0.58 (0.81%)

, LRCX

Lam Research

$100.19

4.02 (4.18%)

08:24

10/07/16

10/07

08:24

10/07/16

08:24

KLA-Tencor upgraded to Buy after merger termination at Needham

As previously reported, Needham analyst Y. Edwin Mok upgraded KLA-Tencor (KLAC) to Buy from Hold, with an $84 price target, after the company and Lam Research (LRCX) terminated their proposed merger. The analyst believes the deal termination has several benefits including more focus on execution of growth strategy, and highlights importance of process control. Additionally, it allows KLA-Tencor to independently pursue M&A to gain market share or expand its TAM, and transition to leaner operating structure going forward, he notes.

Cowen analyst Timothy Arcuri said the KLA-Tencor (KLAC) merger with Lam Research (LRCX) was called off as expected. He said it was consistent with his assessment and believes Intel (INTC) was the culprit. The companies cited review of options amid recent ant-trust agency feedback. Arcuri said he continues to like Lam Research but prefers KLA-Tencor as he sees it as one of the only semi companies with roughly 30% upside. Arcuri maintained his Outperform rating and $80 price target on KLA-Tencor shares.

10/06/16

FBCO

10/06/16NO CHANGETarget $85FBCOOutperform

KLA-Tencor remains a top pick for 2H 2016, says Credit Suisse

Credit Suisse analyst Farhan Ahmad said merger termination between KLA-Tencor (KLAC) and Lam Research (LRCX) was expected and continues to view KLAC as a top pick for 2H 2016. The analyst said Foundry capex is strong near-term and Gen 5 product growth will drive revenue growth above peers in 2017. Ahmad rates KLA-Tencor an Outperform with an $85 price target.

10/07/16

NEED

10/07/16UPGRADENEEDBuy

KLA-Tencor upgraded to Buy from Hold at Needham

LRCXLam Research

$100.19

4.02 (4.18%)

10/06/16

RILY

10/06/16UPGRADETarget $86RILYBuy

KLA-Tencor upgraded to Buy from Neutral at B. Riley

B. Riley analyst Craig Ellis upgraded KLA-Tencor (KLAC) to Buy and raised his price target for the shares to $86 from $78 after the company discontinued its proposed merger with Lam Research (LRCX).

After Lam Research (LRCX) and KLA-Tencor (KLAC) announced that their merger had been terminated, RBC Capital analyst Amit Daryanani remains upbeat on Lam's outlook as a standalone entity. He expects the company to benefit from strong 3D-NAND spending in 2017, and he keeps a $105 price target and Outperform rating on the stock.

10/06/16

JPMS

10/06/16NO CHANGEJPMSOverweight

JPMorgan recommends buying KLA-Tencor after merger termination

JPMorgan analyst Harlan Sur says that while the terminated merger is "disappointing for both parties," both KLA-Tencor (KLAC) and Lam Research (LRCX) are undervalued on a standalone basis. The analyst expects KLA-Tencor to be "aggressive buyers" of its own stock. He sees share upside to the $85-$90 range and keeps an Overweight rating on the name. Sur recommends buying the shares.